Owning a luxury watch comes with more than just the initial price tag. There are many hidden costs that can add up over time, from depreciation to maintenance and servicing costs and even insurance. Here's a closer look at some of the hidden costs of owning a luxury watch:
Depreciation Rate: Luxury watches, especially brand-new models, can depreciate at a significantly faster rate than more common watches. Once you purchase a luxury watch, its value can decrease by as much as 20-30% once you take it out of the store [1]. This is due to the high costs associated with manufacturing a luxury watch and the high demand for new models in the market. However, there are some brands that hold their value better than others, such as Tissot and Frederique Constant. These brands are known for their quality craftsmanship and durability, which can make them a good investment in the long run.
Maintenance and Servicing: Luxury watches often require regular maintenance and servicing to keep them in optimal condition. These costs can add up over time, especially if the watch requires specialized care or replacement parts [1]. For example, Rolex recommends having its watches serviced every 5 to 10 years to maintain its performance and accuracy [2]. This can add up to a significant cost over time, especially if you have multiple luxury watches that require regular servicing. In addition, some luxury watches come with special warranties that require them to be serviced by authorized technicians only, which can further increase the cost of maintenance and servicing [3].
Insurance: Luxury watches are valuable assets and may require additional insurance coverage to protect against loss, theft, or damage. The cost of insuring a luxury watch can vary depending on factors such as the watch's value and your location [1]. For example, insuring a Rolex Submariner can cost up to $5000 per year [4]. It's important to shop around and compare insurance rates to find the best deal for your luxury watch. However, keep in mind that insurance may not always be necessary, especially if your watch is insured under your home insurance policy or if it has a low value compared to your total assets.
Limited Editions and Exclusivity: Some luxury watches are produced in limited quantities or are part of exclusive collections. While these watches may hold their value well or even appreciate over time, they can come with a higher initial price tag [1]. This is due to their rarity and desirability among collectors and investors. For instance, the Tissot T- Race MotoGP Chronograph 2022 Limited Edition is a great choice for a limited edition timepiece as Tissot watches are well known for holding their value over time, they are sure to be a secure investment with their watches also starting at reasonable prices.
However, it's important to do your research before purchasing a limited edition or exclusive watch to ensure that it's worth the higher price tag. Otherwise, you may end up paying more than it's worth down the road.
Resale Value: When it comes time to sell or trade in your luxury watch, you may not recoup the full amount you initially paid for it. The resale value of luxury watches can vary depending on factors such as brand reputation, model popularity, and condition [1]. For example, a pre-owned Rolex Daytona can sell for up to $18,000 in good condition [5]. However, a used Cartier Tank can sell for only $4000 in the same condition [6]. It's important to keep this in mind when purchasing a luxury watch to ensure that you're getting a good deal. It's also important to avoid buying pre-owned watches from unknown sources or dealers as they may not offer the same level of quality or authenticity as an authorized dealer or retailer. Instead, opt for a reputable auction house or reputable dealer who can verify the watch dealer to ensure you're getting a good deal on your luxury watch purchase.
So is a luxury watch like a Tissot worth it, especially considering Tissot watch price and availability in the worldwide markets? The answer is yes. Remember that investing in luxury watches requires careful consideration of factors that will affect its depreciation or appreciation rate, resell value and overall value as an asset such as brand reputation, model popularity, and overall market demand for specific models like those available from The Watch Store, the official reseller of Tissot Philippines.
Overall, owning a luxury watch can be a costly investment that requires careful consideration and planning in order to ensure you are getting the most value for your money. By being aware of the hidden costs associated with ownership, you can make an informed decision about whether or not a luxury watch is right for you. For those who are willing to take on the added expense and responsibility, a luxury watch can be a valuable addition to your collection and a rewarding investment for years to come.
Stay in touch and follow our social media accounts for real time updates and upcoming promotions:
Subscribe to our Messenger Newsletter for exclusive website only deals
Sources:
[1] https://mycarmakesnoise.com/general/the-hidden-costs-of-owning-a-luxury-car/
[2] https://www.gobankingrates.com/saving-money/car/costly-car-traps/
[3] https://carfaq24.com/hidden-costs-luxury-car/
[4] https://www.capitalone.com/cars/learn/getting-a-good-deal/the-hidden-costs-of-driving-a-used-luxury-car-and-how-to-beat-them/1730
[5] https://howtomoney.com/hidden-costs-of-owning-a-car/
[6] https://www.getexoshield.com/blog/the-real-cost-of-luxury-vehicle-ownership